KUALA LUMPUR -- Malaysia has rolled out new incentive packages to attract the world's leading startups and venture capital firms to the country, hoping to build a robust startup ecosystem that will spur growth.
"With the right investors and the right talent in Malaysia, we will make Malaysia the Southeast Asian base for global technology companies under the Unicorn Golden Pass. We want to attract global unicorns to enter Malaysia so that high-skilled and high-value jobs are created, besides developing a pipeline of future entrepreneurs and senior leaders in tech," said Economy Minister Rafizi Ramli in his keynote address during the KL20 Summit startup event in Kuala Lumpur on Monday.
The Unicorn Golden Pass program offers a host of benefits, including exempted fees for employment passes for senior management, subsidized rental, and concessionary tax rates on corporate profits. These incentives are designed to make Malaysia a preferred choice for global and regional startups looking to establish their base.
The government has also launched the VC Golden Pass program targeting venture capital firms, which includes an exemption of work visa fees for senior VC executives and expedited license approval for fund set-ups in the country.
According to the government, global or regional VCs with assets under management of more than $100 million and a strong track record of investing in and scaling successful tech startups are eligible for the scheme.
"We are offering a series of incentives, including LP (limited partner) funding access opportunities, subsidized office spaces, expedited license registrations, and exempted fees for employment passes," Rafizi said.
Meanwhile, Prime Minister Anwar Ibrahim said that the government recognizes the growing importance of startups in driving technological advancements, adding that the KL20 Summit event marks "a clear break from the past" as a comprehensive effort to catalyze the tech ecosystem in the country.
"We are positioning Malaysia as an axis for leaders in semiconductors, clean energy, agritech and Islamic fintech. Doubling down on our edge will tap into the higher-value effort to create new growth verticals and transform our fortunes," he said.
Anwar also announced on Monday the establishment of an integrated chip design hub in the state of Selangor near the capital. Among those setting up their bases in the hub are Phison Electronics' new venture MaiStorage, ARM Holdings, Malaysian chip design solutions company SkyeChip, and Shenzhen Semiconductor Industry Association.
Source: https://asia.nikkei.com/Business/Startups/Malaysia-rolls-out-Golden-Pass-to-lure-unicorns-and-VC-firms